Key Takeaways
- • Kholo Capital Mezzanine Debt Fund I has provided R275 million (approximately US$17 million) in mezzanine debt financing to South African ICT distributor DCC Holdings, according to Africa Private Equity News.
- • The funding will be used to refinance existing debt and support DCC's growth plans.
- • Kleoss Capital, which invested in DCC through its second private equity fund, remains a shareholder alongside senior management, and Kholo Capital is being introduced into DCC's capital structure.
- • Kholo Capital Mezzanine Debt Fund I is a R1.4 billion specialist fund that reached final close, targeting mid-market businesses with mezzanine loans.
Summary
The Kholo Capital Mezzanine Debt Fund I has provided R275 million (US$17 million) in mezzanine debt financing to DCC Holdings, a South African information and communications technology (ICT) distributor, according to Africa Private Equity News. The proceeds will be used to refinance existing debt and support the company's growth plans.
Founded in 1988 and headquartered in Johannesburg, DCC distributes technology products and solutions across Southern Africa. Its portfolio spans personal computing, printing, enterprise infrastructure and software, including products from HP, Dell and Lenovo. Kleoss Capital invested in DCC through its second private equity fund and remains a shareholder alongside senior management.
Mokgome Mogoba, managing partner and co-founder of Kholo Capital, said the transaction shows how structured mezzanine debt can optimise a company's capital structure, refinance existing debt and provide the financial flexibility needed for sustainable growth. He cited DCC's market position, longstanding relationships with leading global technology manufacturers, an extensive reseller network and established logistics capabilities.
Hale Matsipa, managing partner of Kleoss Capital, described the deal as another successful collaboration between Kleoss and a fellow private markets investor, and said it reflected positive momentum in South Africa's private markets. Carlos Ferreira, CEO of DCC, said shareholders comprising senior management and Kleoss Capital were pleased to introduce Kholo Capital into the group's capital structure, and pointed to the addition of key brands and expansion of existing vendor relationships.
Publisher context describes Kholo Capital Mezzanine Debt Fund I as a R1.4 billion fund that reached final close in commitments to make long-term mezzanine investments in small and medium-sized businesses.
Founded in 1988 and headquartered in Johannesburg, DCC distributes technology products and solutions across Southern Africa. Its portfolio spans personal computing, printing, enterprise infrastructure and software, including products from HP, Dell and Lenovo. Kleoss Capital invested in DCC through its second private equity fund and remains a shareholder alongside senior management.
Mokgome Mogoba, managing partner and co-founder of Kholo Capital, said the transaction shows how structured mezzanine debt can optimise a company's capital structure, refinance existing debt and provide the financial flexibility needed for sustainable growth. He cited DCC's market position, longstanding relationships with leading global technology manufacturers, an extensive reseller network and established logistics capabilities.
Hale Matsipa, managing partner of Kleoss Capital, described the deal as another successful collaboration between Kleoss and a fellow private markets investor, and said it reflected positive momentum in South Africa's private markets. Carlos Ferreira, CEO of DCC, said shareholders comprising senior management and Kleoss Capital were pleased to introduce Kholo Capital into the group's capital structure, and pointed to the addition of key brands and expansion of existing vendor relationships.
Publisher context describes Kholo Capital Mezzanine Debt Fund I as a R1.4 billion fund that reached final close in commitments to make long-term mezzanine investments in small and medium-sized businesses.
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